Gov. Steve Beshear is set to deliver his budget proposal to a joint session of the Kentucky House and Senate. It marks the starting point for months of haggling over a larger pool of state revenues still not expected to meet funding demands.

Leading up to his Tuesday night speech, the governor warned lawmakers face a "tough budget situation," despite the projected upswing in revenue flowing into Kentucky's General Fund in the next two years.

Beshear says the extra revenue will be consumed by big-ticket spending obligations, including shoring up the government pension system.

The governor has said he's willing to propose cuts in parts of state government to free up money for education.